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Taxation Determination

TD 93/77

Income tax: is interest paid by an Australian resident to a non-resident government savings bank exempt from withholding tax under paragraph 128B(3)(a) of the Income Tax Assessment Act 1936 ?

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FOI status:

may be releasedFOI number: I 1214792

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. Yes, if all of the following conditions are met:

(i)
The foreign bank is a non-resident in terms of subsection 6(1).
(ii)
The foreign bank is exempt from Australian income tax by virtue of paragraph 23(i) [i.e., the income of a savings bank conducted exclusively for the benefit of depositors].
(iii)
The foreign bank provides documentary evidence from the taxation authority in the country in which the foreign bank resides (i.e. broadly speaking, either where it is incorporated or where it carries on business and where its central management and control are located) that it is exempt from income tax in that country.

Commissioner of Taxation
29/04/93

Previously issued as Draft TD92\D29

References

ATO references:
NO ADVC 1889MEL

ISSN 1038 - 8982

Subject References:
Exempt income;
interest payments;
non-resident government savings bank;
withholding tax

Legislative References:
ITAA 6(1);
23(i);
128B(3)(a);

TD 93/77 history
  Date: Version: Change:
You are here 29 April 1993 Original ruling  
  7 May 2008 Withdrawn  

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